Pradhan Mantri Formalization of Micro Food Processing Enterprises (PMFME) Scheme- UPSC Current Affairs

Context

The scheme has completed two years and a journey that started with the zest to empower the unorganized Micro Enterprises. 

About PMFME Scheme

• PMFME Scheme is a centrally sponsored scheme launched on 29th June 2020.
• It was launched by the Ministry of Food Processing Industries under Atmanirbhar Bharat Abhiyan.
• It is currently being implemented in 35 States and Union Territories. 
• It aims for providing financial, technical and business support for upgradation of existing micro food processing enterprises.

Also read: The Unknown and the Unsung “Alluri Sitarama Raju”

Objectives of the PMFME Scheme

• Capacity building of entrepreneurs
• Technology upgradation of existing micro food processing units 
• Transition of existing enterprises into formal framework 
• Integration with organized supply chain by strengthening branding & marketing.

Salient Features of PMFME

To achieve above mentioned objectives, the scheme will focus on following components:

• One District One Product: The scheme adopts the One District One Product (ODOP) approach. The ODOP could be a perishable agri-produce, cereal-based product or a food product widely produced in a district. ODOP will reap the benefit of scale in terms of
  • Procurement of inputs
  • Availing common services 
  • Marketing of products
• Upgradation of Individual Micro Food Processing Units: 
  • Existing processing units will be encouraged to upgrade their technology or expand their units through Credit Linked Subsidy.
• Training support for the micro enterprise:
  • All individuals & institutions members receiving grants would undergo training for upgradation of their skills. 
  • Training support would also be provided to other existing individual units and groups producing ODOP products in the district.
  • Training support would also be provided for units that are or could become part of support for Marketing & Branding. 
• Support To FPOS/SHGs/Producer Cooperatives:
  • The scheme would support clusters and groups such as FPOs/SHGs/ producer cooperatives along their entire value chain.
  • It will be done through credit link subsidy, training or seed capital, etc. 
• Seed Capital to SHG:
  • Seed capital Rs. 40,000/- per SHG member would be provided to those engaged in food processing for working capital and purchase of small tools. 
  • Priority would be given for SHGs involved in ODOP produce in giving seed capital. 
• Common Infrastructure:
  • Common infrastructure support would be provided to FPOs, SHGs, cooperatives, any Government agency, or private enterprises. 
  • Common infrastructure created under the PMFME scheme should also be available for other units and the public to utilize on a hiring basis for a substantial part of the capacity.
• Branding and Marketing Support:
  • Marketing and branding support would be provided to groups of FPOs/SHGs/Cooperatives or an SPV of micro food processing enterprises under the scheme. 
  • Following the ODOP approach, marketing & branding support would only be provided for such a product at the State or regional level.

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